Student Loans

Student Loans are included in most students' financial aid awards. Loans are a form of financial aid that must be repaid with interest.

Loans included in the award letter are considered to be accepted by the student until we receive notice of decrease or decline in writing. You may decrease or decline the loan by emailing loanhelp@smith.edu or noting your decision on your financial aid award letter and returning it to the Office of Student Financial Services.

The three types of loans most commonly awarded to students enrolled at Smith:

Federal Direct Student Loans

Federal direct student loans are used by many students to help finance educational costs.

A subsidized loan does not accrue interest while you are in school. An unsubsidized loan does accrue interest while you are enrolled.

More information about federal direct student loans

Eligibility for the subsidized loan is based on the Federal Expected Family Contribution (EFC), college costs for the year and all other sources of aid. Students who do not qualify for the subsidy may still apply and borrow under the unsubsidized program. For unsubsidized loans, interest accrues from the time the loan is disbursed. Students qualifying for the subsidized loan may also borrow through the additional unsubsidized program.

*Independent students or a dependent student whose parent PLUS Loan has been denied may request the additional unsubsidized loan by contacting our office.

Ada Comstock & Independent Students

The amount that a student can borrow may be limited based on the standard educational budget that Smith establishes. If you believe that your expenses may be greater than the level of loans that you have been awarded, please complete a Cost of Educational Expenses Worksheet (PDF).

Aggregate (lifetime) Borrowing Limits

Dependency Status

Maximum Subsidized

Maximum Combined Subsidized & Unsubsidized

Dependent undergraduate

$23,000

$31,000

Independent undergraduate

$23,000

$57,500

Interest Rates

The interest rates for subsidized and unsubsidized direct student loans are fixed and set based on when the loan is first disbursed. The table below lists rates for the past several years:

First Disbursed

Subsidized

Unsubsidized

July 9, 2009–June 30, 2010

5.6%

6.8%

July 1, 2010–June 30, 2011

4.5%

6.8%

July 1, 2011–June 30, 2012

3.4%

6.8%

July 1, 2012–June 30, 2013

3.4%

6.8%

July 1, 2013–June 30, 2014

3.86%

3.86%

July 1, 2014-June 30, 2015

4.66%

4.66%

Loan Origination Fee

The Department of Education deducts a loan origination fee on subsidized and unsubsidized Direct Loans. For loans first disbursed on or after December 1, 2013, and before October 1, 2014, the orgination fee is 1.072%. For loans first disbursed on or after October 1, 2014 the origination fee is 1.073%

Disbursement Requirements

First-Time Borrowers

On or after you receive your finalized award letter beginning May 1, go to www.Studentloans.gov and complete:

Entrance Counseling (this provides information about your rights and responsibilities as a borrower); and

Master Promissory Note

Smith will be notified electronically after you have completed these requirements.

Disbursement

Loan proceeds are applied to the student's account in two disbursements, one each semester.

Repayment

Repayment of the loan begins six months after the student leaves Smith College, graduates, or ceases to be enrolled at least half time. The six-month timeframe is considered the grace period.

Unsubsidized loans accrue interest during the grace period. Subsidized loans disbursed between July 1, 2012 and July 1, 2014 also accrue interest during the grace period. Subsidized loans disbursed prior to July 1, 2012 and after July 1, 2014 do not accrue interest during the grace period.

Loan Calculator

Exit Counseling

Students who have borrowed through the Federal Direct Student Loan programs are required to complete exit counseling if they are no longer enrolled at least half time. Smith College will be notified electronically when this requirement has been completed.
Visit www.studentloans.gov for more information.

Questions?

Federal Perkins Loans

A federal Perkins loan is a fixed rate federal loan made available through Smith College to help you meet the costs of postsecondary education. Smith has limited Perkins funding and funds are awarded at the discretion of the staff of the Office of Student Financial Services.

More information about federal Perkins loans

Eligibility depends on many factors but is determined by your calculated financial need.

There are no processing fees deducted from the Perkins Loan.

Loan Limits

The Office of Student Financial Services determines the amount not to exceed the federal limits of:

Maximum Annual Amount

Maximum Cumulative Amount

First-Year Students

$5,500

$11,000

Sophomores

$5,500

$11,000

Juniors

$5,500

$27,000

Seniors

$5,500

$27,000

Interest Rates

Five percent, beginning nine months after graduation, withdrawal from the college, or a drop below half-time enrollment.

Disbursement Requirements

First-Time Borrowers

Master Promissory Note: Borrowers will be sent instructions for the electronic MPN process via email.

Disbursement

Loan proceeds are applied to the student's account in two disbursements, one each semester.

Repayment

Repayment of the loan begins nine months after the student leaves Smith College, graduates or ceases to be enrolled at least half time. The nine-month timeframe is considered the grace period. The monthly payment amount depends on the amount borrowed, but it may not be less than $40 per month. The repayment period is 10 years.

Exit Counseling

Students who have borrowed through the federal Perkins student loan programs are required to complete exit counseling if they are no longer enrolled at least half time. Smith College will be notified electronically when this requirement has been completed. Go to www.mappingyourfuture.org.

Questions?

International Student Loans

Smith College International Student Loans are made available through private funds administered by Smith College. These funds are limited and loans are included as part of a student's financial aid award.

More information about international student loans

Annual Borrowing Limits

Listed below are projected need-based loan limitations. These levels are estimated and moderate changes may be made each year.

Loan Award

First-Year Students

$3,000

Sophomores

$4,000

Juniors

$5,650

Seniors

$6,200

Interest Rate

Six percent, beginning six months after you graduate, withdraw or drop below half-time enrollment. Interest can be deferred if you enroll at least half time in graduate school.

Disbursement Requirements

Self-Certification Form (enclosed with award letter; required for each loan)

Disbursement

Loan proceeds are applied to the student's account in two disbursements, one each semester.

Repayment

Repayment of the loan begins six months after the student leaves Smith College, graduates or ceases to be enrolled at least half time. The six-month timeframe is considered the grace period. The monthly payment amount depends on the amount borrowed, but it may not be less than $50 per month. The repayment period is 10 years.